Skip to content
  • Overview
  • Curriculum
    • FLUMental maths and numerical fluency
    • COMBCounting and combinatorics
    • PROBProbability
    • GAMEGames, decision theory and puzzles
    • MMMarket making
    • MKTMarkets and products

Practise

  • Question bank
  • Mental arithmetic
  • Market simulator
  • Arbitrage trees
  • Horse racing
  • Bid book
  • Screening tests
  • Mock papers

Reference

  • Formula reference
  • Search

Your record

  • Review queue
  • Progress
  • Leaderboard
  • Profile
  • Invite friends
AccountSend feedback
  1. Formulas

Probability

Indicator expectation

Converts a probability question into an expectation question, which linearity can then take apart.

E[IA]=Pr⁡(A)\mathbb{E}[I_A] = \Pr(A)E[IA​]=Pr(A)

Where

IAI_AIA​
One when the event AAA occurs, zero otherwise.

Sanity check. Only valid for a variable that takes the values 0 and 1 — no other two-point variable.

Where this is taught

  • Linearity of expectation · PROB · Expectation, variance and the big tricks

QuantMax · 141 lessons · 1342 questions · c5c0caa

  • Premium
  • Arbitrage trees
  • Horse racing
  • Invite friends
  • Account
  • About QuantMax
  • Terms
  • Privacy

Firm names identify publicly reported question patterns and nothing more. QuantMax is not affiliated with, endorsed by, or recruiting for any firm named in the curriculum. Everything you do in lessons and the question bank is kept to your account.